| IRS News & Updates |
>Change in Standard Milage Rate
57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019,
17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019
14 cents per mile driven in service of charitable organizations
.>Whats New for 2018
There a lot of changes happening for the 2018 tax year starting with a new 1040 form.
Below are a list of changes
Standard deduction amount increased.
For 2018, the standard deduction amount has been increased for all filers, and the amounts are as follows.
•Single or Married Filing Separately—$12,000.
•Married Filing Jointly or Qualifying Widow(er)—$24,000.
•Head of Household—$18,000.
Deduction for personal exemptions suspended.
For 2018, you can’t claim a personal exemption deduction for yourself, your spouse, or your dependents.
Changes to itemized deductions.
For 2018, the following changes have been made to itemized deductions that can be claimed on Schedule A.
•Your itemized deductions are no longer limited if your adjusted gross income is over a certain amount.
•You can deduct the part of your medical and dental expenses that is more than 7.5 percent of your adjusted gross income.
•Your deduction of state and local income, sales, and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if married filing
separately).
•You can no longer deduct job-related expenses or other miscellaneous itemized deductions that were subject to the 2 percent of AGI floor. You may
still deduct certain other items on Schedule A, such as gambling losses.
•For indebtedness incurred after December 15, 2017, the deduction for home mortgage interest is limited to interest on up to $750,000 of home
acquisition indebtedness. This new limit doesn’t apply if you had a binding contract to close on a home after December 15, 2017, and closed on or
before April 1, 2018, and the prior limit would apply.
•You can no longer deduct interest on home equity indebtedness, which means indebtedness not incurred for the purpose of buying, building, or
substantially improving the qualified residence secured by the indebtedness.
•The limit on charitable contributions of cash has increased from 50 percent to 60 percent of your adjusted gross income.
Moving expenses no longer deductible.
For 2018, you can no longer deduct your moving expenses unless you are a member of the Armed Forces on active duty.
Child tax credit and additional child tax credit.
For 2018, the maximum credit increased to $2,000 per qualifying child. The maximum additional child tax credit increased to $1,400. In addition, the
income threshold at which the credit begins to phase out is increased to $200,000 ($400,000 if married filing jointly).
Credit for other dependents.
A new credit of up to $500 is available for each of your dependents who does not qualify for the child tax credit. In addition, the maximum income
threshold at which the credit begins to phase out is increased to $200,000 ($400,000 if married filing jointly).
Social security number (SSN) required for child tax credit.
Your child must have an SSN issued before the due date of your 2018 return (including extensions) to be claimed as a qualifying child for the child
tax credit or additional child tax credit. If your dependent child has an ITIN, but not an SSN, issued before the due date of your 2018 return (including
extensions), you may be able to claim the new credit for other dependents for that child.
>Get Ready for Taxes: Choosing a Tax Return Preparer? As the tax filing season approaches, the Internal Revenue Service is reminding
taxpayers to start thinking about who will prepare their federal tax return.
>Ten Things to Know About Capital Gains and Losses
Did you know that almost everything you own and use for personal or investment purposes is a capital asset?
>IRS Offers Tips for Year-End Giving
Individuals and businesses making contributions to charity should keep in mind some key tax provisions that have taken effect in recent years,
especially those affecting donations of clothing and household items and monetary donations.
57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019,
17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019
14 cents per mile driven in service of charitable organizations
.>Whats New for 2018
There a lot of changes happening for the 2018 tax year starting with a new 1040 form.
Below are a list of changes
Standard deduction amount increased.
For 2018, the standard deduction amount has been increased for all filers, and the amounts are as follows.
•Single or Married Filing Separately—$12,000.
•Married Filing Jointly or Qualifying Widow(er)—$24,000.
•Head of Household—$18,000.
Deduction for personal exemptions suspended.
For 2018, you can’t claim a personal exemption deduction for yourself, your spouse, or your dependents.
Changes to itemized deductions.
For 2018, the following changes have been made to itemized deductions that can be claimed on Schedule A.
•Your itemized deductions are no longer limited if your adjusted gross income is over a certain amount.
•You can deduct the part of your medical and dental expenses that is more than 7.5 percent of your adjusted gross income.
•Your deduction of state and local income, sales, and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if married filing
separately).
•You can no longer deduct job-related expenses or other miscellaneous itemized deductions that were subject to the 2 percent of AGI floor. You may
still deduct certain other items on Schedule A, such as gambling losses.
•For indebtedness incurred after December 15, 2017, the deduction for home mortgage interest is limited to interest on up to $750,000 of home
acquisition indebtedness. This new limit doesn’t apply if you had a binding contract to close on a home after December 15, 2017, and closed on or
before April 1, 2018, and the prior limit would apply.
•You can no longer deduct interest on home equity indebtedness, which means indebtedness not incurred for the purpose of buying, building, or
substantially improving the qualified residence secured by the indebtedness.
•The limit on charitable contributions of cash has increased from 50 percent to 60 percent of your adjusted gross income.
Moving expenses no longer deductible.
For 2018, you can no longer deduct your moving expenses unless you are a member of the Armed Forces on active duty.
Child tax credit and additional child tax credit.
For 2018, the maximum credit increased to $2,000 per qualifying child. The maximum additional child tax credit increased to $1,400. In addition, the
income threshold at which the credit begins to phase out is increased to $200,000 ($400,000 if married filing jointly).
Credit for other dependents.
A new credit of up to $500 is available for each of your dependents who does not qualify for the child tax credit. In addition, the maximum income
threshold at which the credit begins to phase out is increased to $200,000 ($400,000 if married filing jointly).
Social security number (SSN) required for child tax credit.
Your child must have an SSN issued before the due date of your 2018 return (including extensions) to be claimed as a qualifying child for the child
tax credit or additional child tax credit. If your dependent child has an ITIN, but not an SSN, issued before the due date of your 2018 return (including
extensions), you may be able to claim the new credit for other dependents for that child.
>Get Ready for Taxes: Choosing a Tax Return Preparer? As the tax filing season approaches, the Internal Revenue Service is reminding
taxpayers to start thinking about who will prepare their federal tax return.
>Ten Things to Know About Capital Gains and Losses
Did you know that almost everything you own and use for personal or investment purposes is a capital asset?
>IRS Offers Tips for Year-End Giving
Individuals and businesses making contributions to charity should keep in mind some key tax provisions that have taken effect in recent years,
especially those affecting donations of clothing and household items and monetary donations.
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